{
  "id": "term-conduct-risk",
  "type": "term",
  "languages": {
    "en": {
      "id": "term-conduct-risk",
      "lang": "en",
      "type": "term",
      "title": "Conduct Risk",
      "shortDefinition": "Conduct risk is the risk that inappropriate behavior by an insurer towards customers causes harm and results in regulatory or reputational consequences.",
      "synonyms": [
        "Verhaltensrisiko"
      ],
      "linesOfBusiness": [
        "All lines"
      ],
      "jurisdictions": [],
      "tags": [
        "Governance",
        "Consumer Protection"
      ],
      "relations": {
        "relatedTerms": [
          "term-beschwerdemanagement"
        ],
        "partOf": [],
        "appliesTo": [],
        "regulatedBy": [],
        "relevantFor": [],
        "insurableVia": [],
        "mitigatedBy": [],
        "comprises": [],
        "alternativeTo": [],
        "complementedBy": []
      },
      "attribute": null,
      "profile": null,
      "coverageProfile": null,
      "clause": null,
      "legalBasis": [],
      "standards": [],
      "reviewStatus": "expert-reviewed",
      "reviewedBy": "Guido Hesse, Hesse Group Holding AG",
      "lastReviewed": "2026-09-04",
      "version": "0.1.0",
      "updated": "2026-08-31",
      "generated": {
        "by": "process:reconstructed",
        "at": "2026-08-31T00:00:00.000Z"
      },
      "verified": [
        {
          "by": "human:ghesse",
          "at": "2026-09-04T00:00:00.000Z",
          "method": null
        }
      ],
      "staleAfter": null,
      "url": "https://hgh.ch/lexikon/en/knowledge/term/conduct-risk/",
      "alternateUrl": "https://hgh.ch/lexikon/de/wissen/begriff/conduct-risk/",
      "body": "## Concept\n\nConduct risk refers to the risk that an insurer, through inappropriate business conduct towards customers — such as poor advice, misleading product information, or unfair claims handling — causes harm to customers, thereby risking regulatory action, fines, reputational damage, or competitive disadvantage.\n\n## Distinction from Operational Risk\n\nConduct risk is closely related to operational risk but focuses specifically on the customer perspective and on whether products, distribution practices, and claims handling are designed in customers' best interests, whereas operational risk more broadly also captures internal process and system failures without a direct customer link.\n\n## Relevance in the Regulatory Context\n\nSupervisory authorities such as BaFin and EIOPA are placing increasing emphasis on managing conduct risk as part of consumer protection initiatives, for example through requirements for product approval processes (Product Oversight and Governance, POG) and the fairness of remuneration structures in distribution."
    },
    "de": {
      "id": "term-conduct-risk",
      "lang": "de",
      "type": "term",
      "title": "Conduct Risk",
      "shortDefinition": "Conduct Risk ist das Risiko, dass unangemessenes Verhalten eines Versicherers gegenüber Kunden zu deren Schaden und zu aufsichtsrecht- lichen oder reputationellen Konsequenzen führt.",
      "synonyms": [
        "Verhaltensrisiko"
      ],
      "linesOfBusiness": [
        "All lines"
      ],
      "jurisdictions": [],
      "tags": [
        "Governance",
        "Verbraucherschutz"
      ],
      "relations": {
        "relatedTerms": [
          "term-beschwerdemanagement"
        ],
        "partOf": [],
        "appliesTo": [],
        "regulatedBy": [],
        "relevantFor": [],
        "insurableVia": [],
        "mitigatedBy": [],
        "comprises": [],
        "alternativeTo": [],
        "complementedBy": []
      },
      "attribute": null,
      "profile": null,
      "coverageProfile": null,
      "clause": null,
      "legalBasis": [],
      "standards": [],
      "reviewStatus": "expert-reviewed",
      "reviewedBy": "Guido Hesse, Hesse Group Holding AG",
      "lastReviewed": "2026-09-04",
      "version": "0.1.0",
      "updated": "2026-08-31",
      "generated": {
        "by": "process:reconstructed",
        "at": "2026-08-31T00:00:00.000Z"
      },
      "verified": [
        {
          "by": "human:ghesse",
          "at": "2026-09-04T00:00:00.000Z",
          "method": null
        }
      ],
      "staleAfter": null,
      "url": "https://hgh.ch/lexikon/de/wissen/begriff/conduct-risk/",
      "alternateUrl": "https://hgh.ch/lexikon/en/knowledge/term/conduct-risk/",
      "body": "## Begriff\n\nConduct Risk bezeichnet das Risiko, dass ein Versicherer durch unangemessenes Geschäftsverhalten gegenüber Kunden – etwa durch Falschberatung, irreführende Produktinformationen oder unfaire Schadenregulierung – Kunden schädigt und dadurch aufsichtsrechtliche Massnahmen, Bussgelder, Reputationsschäden oder Wettbewerbsnachteile riskiert.\n\n## Abgrenzung zu operationellen Risiken\n\nConduct Risk ist eng mit operationellen Risiken verwandt, fokussiert aber spezifisch auf die Kundenperspektive und die Frage, ob Produkte, Vertriebspraktiken und Schadenbearbeitung im besten Interesse der Kunden gestaltet sind, während operationelle Risiken breiter auch interne Prozess- und Systemfehler ohne unmittelbaren Kundenbezug erfassen.\n\n## Bedeutung im aufsichtsrechtlichen Kontext\n\nAufsichtsbehörden wie die BaFin und die EIOPA legen im Rahmen von Verbraucherschutzinitiativen zunehmenden Wert auf das Management von Conduct Risk, etwa durch Anforderungen an die Produktfreigabeverfahren (Product Oversight and Governance, POG) sowie an die Fairness von Vergütungsstrukturen im Vertrieb."
    }
  }
}